How low on avocado do you need to be to not be allowed to say that it’s guac? 3.5% will certainly do it.
It’s less the emulsifier softens it, more it allows water to the added. Cheese is largely fat/oil which doesn’t mix easily with water.
The emulsifier allows you to melt and cast left over cheese, and add water to increase it’s volume. Its original invention was to make use of scrap cuts of cheese.